Gridlock in Washington and a credit-rating scare for France brought sovereign debt to the fore — again — as investors on both sides of the Atlantic sold off shares and fretted over the larger economic picture.
On Wall Street, the S&P Retail Index fell 1.9 percent, or 9.70 points, to 515.01, as the Dow Jones Industrial Average retreated 2.1 percent, or 248.85 points, to 11,547.31.
In Europe — where Moody’s Investors Service raised questions about the future of France’s credit rating, given a growing budget deficit and higher borrowing costs — Milan’s FTSE MIB fell 4.7 percent to 14,509.94, as Paris’ CAC 40 dropped 3.4 percent to 2,894.94 and London’s FTSE 100 fell 2.6 percent to 5,222.60.
Salvatore Ferragamo SpA saw one of the steepest declines, slipping 9 percent to 10.46 euros, as Tod’s SpA fell 5.5 percent to 67.75 euros, Tiffany & Co. dropped 4.7 percent to $71.87, and LVMH Moët Hennessy Louis Vuitton dropped 3.8 percent to 108.15 euros. The euro was down slightly against the dollar at $1.35.
Investors feared the so-called “super committee” of Washington lawmakers would fail to reach a deal to reduce the deficit. That could trigger $1.2 trillion in automatic spending cuts to federal agency budgets over a 10-year period beginning in 2013.
“We’re coming to realize that nobody has the political will to make the decisions that maybe need to be made in order for us to extricate ourselves from this problem,” said Paul Nolte, managing director at investment firm Dearborn Partners. “We really don’t have a lot of [economic] growth that’s going to allow us to grow out of the debt problem. The end game is going to be very similar to what we’ve seen in Japan, where we wind up in a very low growth, noninflationary, even deflationary environment.”
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews